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Economists had expected a 10,000 fall in the number of people employed in May, with an unemployment rate of 5.6 per cent.

However, financial markets still point to the likelihood of another interest rate cut in coming months.

"The RBA has room to move, but the recent Australian dollar depreciation and today's steady labour force report may reduce the urgency for a July cut," HSBC chief economist for Australia and New Zealand, Paul Bloxham, said in a note to clients.

He expects the central bank to wait until official inflation data in late July before considering another move.

Other data indicates consumers expect inflation pressures to remain benign over the next 12 months, and in the lower half of the RBA's two-to-three per cent target band.

The Melbourne Institute's consumer inflation expectations survey centred on a rate of 2.3 per cent in June, unchanged from May.

"This allows the RBA the option to focus on growth rather than inflation, and it is likely that the RBA will loosen monetary policy further to stimulate demand should activity show further signs of weakening," research fellow at the institute, Viet Nguyen, said.

The May jobs data comes amid news of further jobs loses in the media industry and after retailer Target said it would shed 200 jobs at its Geelong head office.

Some economists believe the jobless rate could hit six per cent this year.

In the May federal budget, unemployment was expected to average 5.5 per cent in the June quarter this year, and 5.75 per cent in the same quarter in 2014.